Stock Terminology 2022 QUESTIONS AND ANSWERS

Stock Terminology 2022 AH Correct Answer: After Hours - After 4pm EST when the market closes. bagholder Correct Answer: informal investment term used to describe an investor who holds a position in a stock which decreases in value until it is worthless. Don't be a bagholder catalyst Correct Answer: event that has the potential to cause the price of a security to move up or down. These are events that we are aware are coming. An example: Apple comes out with the new iPhone event. dead cat bounce Correct Answer: temporary recovery after a ticker falls drastically. DD Correct Answer: stands for 'Due Diligence'. It is a very popular acronym in the trading community. It means research in essence. EOD Correct Answer: end of day float Correct Answer: refers to the number of shares that are available for trading to the public. FOMO Correct Answer: Fear of Missing Out. FOMO happens quite often and it can really hinder traders performance. Halt Correct Answer: Trade halted. This means that a ticker was halted due to volatility or news, pausing all trading. IPO Correct Answer: stands for 'Initial Public Offering'. This is the price of one share when a company first goes public on the stock market. LOD Correct Answer: Low of the day Low Float Correct Answer: referring to the amount of shares that a company has available for trading. Tends to be more volatile, meaning they can move quickly. Basics of Supply and Demand Mental Number Correct Answer: whole and half numbers are what we consider mental numbers. Traders like to see numbers hit whole and half number goals... EG: $XYZ is at $0.94, mental number is $1 PDT Correct Answer: Pattern Day Trader PM Correct Answer: Pre-market (refers to the time period before the market opens) R/S Correct Answer: refers to 'Reverse Split'. This is a reduction in the number of a company's traded shares that results in an increase in the par value or earnings per share. (investopedia) Runner/Running Correct Answer: refers to a ticker that is making gains rapidly. Example: Tesla was at 300 and now its at 500 in one hour, it is running! R2G Correct Answer: Red to Green Scaling (in or out) Correct Answer: refers to the trading strategy of buying or selling in portions. Sympathy Correct Answer: refers to tickers that move with a leader or industry. For example, if Tesla is doing amazing, many electric vehicles will follow suit. In that case they would be considered sympathies. Watching/Watchlist Correct Answer: if a member posts this it means that they are keeping a close eye on a ticker to see what it does. Could be bad or good. WW Correct Answer: Worth Watching... similar concept to watching. C Correct Answer: Call option P Correct Answer: Put Option BTO Correct Answer: buy to open STC Correct Answer: sell to close ATM Correct Answer: at the money OTM Correct Answer: out the money ITM Correct Answer: in the money Lock Correct Answer: book profit Out Correct Answer: exit from the position or dispose the option Cut Correct Answer: reduce loss or sold position with loss SL Correct Answer: stop loss UT Correct Answer: up trend DT Correct Answer: down trend LOD Correct Answer: low of day HOD Correct Answer: high of day R/R Correct Answer: reward to risk ratio D/G Correct Answer: downgrade U/G Correct Answer: upgrade LOTTO Correct Answer: Options that expire that day and are usually out of the money, Risk to Zero weekly Correct Answer: this weeks expiration Roll Correct Answer: Taking the profits/loss form the last position on the ticker and buying a higher or lower strike for different expiry ER Correct Answer: earning results Support and Resistance Correct Answer: Support refers to the price level that an asset does not fall below for period of time. An asset's support level is created by buyers entering the market whenever the asset dips to a lower price. Resistance is the a price level that a rising stock can't seem to overcome. Once a stock reaches its resistance level, it often stalls and reverses. Resistance is caused by heavy selling that overpowers buying, and typically occurs at specific resistance price levels. SMA Correct Answer: Simple moving average EMA Correct Answer: exponential moving average DMA Correct Answer: daily moving average Monthly Correct Answer: Monthly options expires 3rd Friday of each month LEAP Correct Answer: Long-term Equity Anticipation LEAP options (or LEAPs) are option contracts that expire at least one year from the date of purchase Beat Correct Answer: meaning that a stock has beaten earnings report expectations Bid Correct Answer: the amount of money a trader is willing to pay per share for a given stock Candle/Candlestick/Candlestick chart Correct Answer: a box and whisker graph in which each box and whisker or "candle" represents one day of trading activity of a given stock. Channeling Correct Answer: when a stock continues to fluctuate thorugh a particular set of price ranges on a fairly consistent basis (trading sideways). Good for determining when to buy into a stock and when to sell - can be for a scalp play anywhere up to 1-4 month play depending on the timescale of the fluctuations in price. Cloud (Ichimoku Cloud) Correct Answer: a technical indicator that helps find support and resistance areas C&H Correct Answer: cup and handle formation, look up chart handles for more EMA Correct Answer: Exponential Moving Average - a type of moving average indicator frequently used in technical analysis Former Runner Correct Answer: a specific ticker has moved a huge amount very quickly at some point in its life, showing the possibility for it to happen again Front Loading Correct Answer: slowly loading a bunch of shares in a specific stock Knife Catch Correct Answer: when you buy into a stock that is currently experiencing a drastic fall in price near the lowest price before it begins to rebound. (from the phrase LOD - low of the day). you "caught a knife" LL Correct Answer: limited liquidity - number of shares available for trading by a brokerage (its difficult to buy into a stock that is LL). This is common with pre-market and after-hour trading Loading Correct Answer: buying more shares of a stock that you already own Mental Stop Loss Correct Answer: a non-literal stop loss that you place in your mind at which point you are determined to sell your shares of a stock. The point of doing this is to avoid having a literal stop loss triggered in the event of a sudden drop in ticker price that does not reflect the general trend line. "My stop loss is at 15%. Despite thinking this stock will do well, if it drops 15% I will sell all of my shares in order to "stop my loss". Offering Correct Answer: also referred to as a "secondary offering." This is when a company offers more shares for sale to buy in order to raise money to invest in expansion or growth. These are common in in penny stocks and can be good for the long term, but most of the times make the price of a stock fall. Stocks generally open up gradually as a company makes more money, so this sudden increase shares available makes many people question why they need the money. Are they not profitable or spending money wisely? Power Hour (PH) Correct Answer: 3-4PM EST. This is the one hour prior to the market closing. Pre-Market (PM) Correct Answer: before the market opens Press Release (PR) Correct Answer: news about a company or person. Press releases can greatly alter a stock depending on what is going on within the company. If Elon Musk is releasing a brand new flying vehicle the stock is going to sky rocket as this could bring a lot of money to a company and raise the price of the stock. If it gets released that Elon Musk has died and leadership is moving to his wife, the stock would plummet as the future of the company could go down the tube. Print Correct Answer: the complete execution of a trade. EX: "1.74 print" means that the given ticker had an order purchase of 1.74 and it was completed.